Although the prices are trying bounce from last 2 weeks, now remained well below 21DMA that has pulled back into the sideway range lasted for 7 weeks.
Current prices are attempting to drop below 7DMA.
While breaking channel support, a resembling bearish engulfing pattern followed by a bearish candle with big real body appeared, as a result, bears continued with slumps.
Both leading oscillators signal this sideway trend continuation, as RSI (14) moving in the linear direction but evidences a little bearish convergence with the dipping prices that signal the sideway trend to prevail. While the stochastic curve has been indecisive.
MACD is also confirming the sideway zones as it moving in linear direction
The long-term investors should wait if it sustains the breach below on a closing basis or bounce back again from 7DMA.
Trade tips:
The active speculators can think of option tunnel construction for downside targets of around 30-40 pips with ease.
On an intraday chart, the prices pushing southwards as it approaches upper Bollinger band and 7DMA, so at the current juncture smart way to approach this pair is to deploy the option tunnel using ITM strikes.
It would be structured as a binary version of a conventional debit put spread, i.e. long delta ITM puts with while writing the lower strikes.
Therefore an In-The-Money tunnel would be formed of an In-the-money -0.75 delta put below the current exchange rate less an Out-Of-The-Money put above the exchange rate. The delta of -0.65 on combined position with slightly negative theta is preferred on this execution.